Ofcom Targets Big Tech with 40 New Measures to Combat Online Scam Adverts

Quick Summary

Ofcom is introducing nearly 40 new safety measures under the Online Safety Act to force Big Tech platforms to eliminate online scam adverts. These rules require major social media and search firms to ban fraudulent accounts, verify financial service advertisers, and face fines of up to 10% of global revenue.

How will Ofcom regulate online scam adverts?

The UK regulator is ending the "ad fraud free-for-all" by implementing a fraudulent advertising code that targets the infrastructure used by cybercriminals. Under these proposals, major platforms must implement robust verification processes for new advertising accounts to ensure individuals are not impersonating legitimate businesses. A critical component involves foiling financial fraudsters by mandating that any entity advertising banking or investment services must be registered with the Financial Conduct Authority (FCA).

• Banning bad actors and preventing them from opening secondary accounts.
• Mandatory FCA verification for all financial services advertisements.
• Dedicated reporting channels for law enforcement to flag and remove scams.
• AI risk testing to prevent criminals from using generative tools for fraud.

What are the consequences for non-compliant tech firms?

Ofcom has made it clear that online scam adverts are no longer a secondary concern, but a legal liability. Once Parliament approves these codes, platforms that fail to protect users could face massive financial penalties. These fines can reach up to £18 million or 10% of a company's global annual revenue, whichever is higher. This move aims to protect the 51% of UK adults who have encountered fraudulent ads and mitigate the £200 million lost annually to these schemes.

How does this impact the wider fintech ecosystem?

By cleaning up the digital advertising space, Ofcom is providing a safer operating environment for legitimate fintech firms and banks. The requirement for proactive technology filters to catch scams at the source will reduce the reputational damage caused when criminals impersonate trusted financial brands. Furthermore, the National Economic Crime Centre and the FCA are collaborating to ensure that online scam adverts are tackled through a unified regulatory front, protecting both consumer assets and market integrity.

FF NEWS TAKE:

This move by Ofcom finally puts teeth into the fight against online scam adverts. For years, fintechs have complained that their brands are being hijacked by fraudsters on social media while platforms looked the other way. By linking compliance to 10% of global revenue, the regulator is ensuring that safety becomes a boardroom priority rather than a CSR footnote. This absolutely moves the needle for UK consumer protection.